tv Squawk Alley CNBC July 14, 2015 11:00am-12:01pm EDT
historic day, three billion miles away on pluto. "squawk alley" is live. ♪ ♪ ♪ ♪ ♪ ♪ welcome to "squawk alley" for a tuesday. you got to play flash gordon on a day like today. joining us jon fortt and kayla tausche. some asking if jon won the masters with the coat. >> not only did i get the green jacket, i snagged the pants, too. >> first up, it appears that this week analysts are starting to shy away from potential, highlighting what works and dumping what does not. bernstein downgrading intel today to underperform.
pointing to weakness in the data center business and at the same time goldman reiterating the buy on netflix, raising its target to 780. said the company is set to represent pli indicate its success around the world in two years. and amazon up to buy due to strong growth from amazon prime and facebook. becomes the fastest company in the s&p to top a quarter trillion-dollar market cap, beating google by about five years. >> how the sell side is saying we're going to give up on some and start chasing some others. >> what makes me scratch my head about this, amazon is pretty much at all-time highs. netflix just about there, too. so that suggests to me heading into the earnings season where people are frankly a little bit queasy. the expectation is still that certain stroks that have been on the growth trajectory are going to continue to turn in numbers that are going to please investors while those like intel that we know is having trouble in the pc market in perhaps
hitting bumps in data center. i wonder if apple, microsoft, face book, names like that, might determine in the overall mood gets pessimistic. if facebook's growth number isn't quite as high as people expect. if microsoft's cloud business isn't powering growth despite the pc business, do people step back from everything, including your amazons and netflixs, which some people are still raising their targets on? >> there seems to be fear of being short going into any one of these names. amazon prime day which is happening tomorrow and netflix, which reed hastings has said they will turn a profit internationally by the end of the year. you don't want to be short going into that windows 10 coming out at the end of the month. where's the big bet where people say this won't work, don't buy this. >> amazon invented its own
catalyst. it's squawk day. everybody watch. >> they're a company for whom margins don't really matter. there's an expectation that they'll mark down products to such a degree that sales will go up. >> but margins do matter. they're spending in some areas in order to invest in growth and other areas. what they're trying to do here i think is spark prime membership that will have benefits in the back half of the year, in the holidays, back to school. >> ub s's target goes from 450 to 550 and tomorrow we'll get netflix earnings and intel earnings and see how prime day shapes up. for more on tech, let's bring in scott kesler. are you beginning to see some polarization in, in the names that are up or down? >> not necessarily. although it is interesting. it does seem like people are gravitating to those names that frankly are working and working
well. and staying away from those names that haven't worked well. that being said, we tend to try to be growth at a reasonable price type analysts. we upgraded yahoo last week in light of the crash and the shinzhen over in china and now we've seen obviously that market firm and the people are perhaps discovering values in the market right now. >> funny you say that i'm looking at a chart of twitter. back above the 50-day. this is amazing, going bag to that horrible earnings quarter where results came out early and dick costolo talked to us on air. that's late april, a long time to rebuild value. >> absolutely, carl and after that debacle in terms of how the earnings were released and then how the company dealt with the aftermath of that. >> we upgraded the stock at that
point and ended up getting a price around the high 30s. so the stock down from that level but frankly we see a lot of value in twitter. we think it's a stock, a company that people frankly misunderstand pretty significantly. think about the value. kayla was talking about catalysts, we think there's a lot of winds of change blowing when it comes to twitter and a lot of good things could happen there. >> as the trade year to date goes, twitter and yahoo have both underperformed their tech peers. if you want to buy an amazon, a facebook and you want to buy low and sell high, you haven't had many opportunities to get in. do you think the opportunities have passed. or do you think we'll get one. or do you think that an investor should buy at the levels we're seeing now? >> on the one hand, our strategy team has an overweight opinion on the technology sector. on the other hand, it would be i think foolhardy not to
acknowledge that over the last number of years, when we've seen a correction in the technology sector it has tended to occur during the summer months. that's when inventory is building tlrks less economic activity. europe for the most part is on vacation in august. and folks are looking towards the fourth quarter so i think opportunities will present themselves. but in names like twitter and yahoo, we think the time is now and we actually have a strong buy. >> so -- scott, what do you expect the overall theme to be for this earnings seesen? i mean i'm suspecting that they're going to be certain stocks that determine the sentiment. i don't know if it's apple. i don't know if it's microsoft or facebook. but overall, are people going to be looking for revenue growth and excited overall if they see it and keep the valuations high on your amazons and your netflixs? what do you expect the overall story to be? >> i think that's a reasonable way to think about it. i think one of the things to consider is of course, the strong dollar where the strength
continues and i was just looking before heading down here, essentially you have a lot of major technology companies with considerable exposure overseas. if you think about companies set to report like ebay, like facebook, like google. well over 50% of revenues coming from overseas. that is potentially another overhang. remember a lot of the disappointment last quarter related to the dollar, that could continue. and then of course, we think guidance is going to be tepid, given not only the dollar's strength, but also as i mentioned, some of the seasonal weakness that we have seen and we continue to expect in q 3. >> we mentioned the bernstein downgrade of intel, scott their argument is we know the pc story going to be bad. but now they think the weakness is spreading to data centers and that the overall narrative of their quarter will be how bad is it. is that true? and if so, why isn't it, why isn't the bar so low that they can surprise to the upside? >> i think that's very possible.
we have a buy opinion on intel. with the stock around $30, it seems to us like a pretty good value here. obviously the stock hasn't performed that well year to date in part because of execution issues. in part because of pcs, and in part because of concerns related to market share shifts and profitability related to data centers, we think a lot of the bad news is in the stock. >> scott, good to talk to you, there's going to be a lot to talk about over the next 48 hours, scott kesler over at s&p capital. the united states reaching the historic nuclear deal with iran, sure to have an impact on the price of oil. jackie de angelis is at the nymex with more on that. >> what's interesting is we saw a steep reaction to the deal earlier this morning. but prices are stabilizing, we're actually up 16 cents on wti 52.37 is where we stand now. now remember, this has been pretty much priced in. we've shed $10 over the last
month or so in terms of oil prices. and whether you think this is a good deal or a bad deal that the u.s. has cut here. it will have an impact on oil prices as we go forward. let me walk you through this. the first issue is the timeline here. about 12 to 18 months before this oil will come online in a meaningful way. there is a 60-day approval process. president obama has veto power. if this does not go through. how it will impact the actual oil markets is like this -- we've got about anywhere from 20-40 million barrels of offshore oil this is floating storage oil that iran has right now. it's ready to go. analysts think it could probably get about 400,000 barrels to market per day. as soon as the end of the year. but then there's also the production question. how quickly will iran ramp? now officials have said they'd like to add a million barrels of production per day by the end of the year. that's a very aggressive target. analysts are saying probably oenlt 100 or 200,000 barrels a
day, in addition to the just under three million barrels they're producing now. it sounds like a drop in the bucket. but when you consider the context that we are in a global market that is oversupplied right now. the u.s. producing 9.6 million, saudi arabia, 10.6 million, there's just an oil glut out there. and demand estimates are not rising fast enough to meet it. so the question is, when are we going to see this market really balance itself out. and when the oil does come online, will we see another price dip in wti? now there is a lot of interest also in oil companies, wanting to do business in iran. we heard at the last opec meeting from shell, total, bp saying they want to get into the game over there. and think about the reserves that the country has. about 10% of the world's reserves are in that country. it's just not exporting a lot right now so when the sanctions are lifted, this is something to think about. as we move forward. with oil prices. i do also want to mention iran is the second largest producer of natural gas reserves as well.
so there's a lot of energy impact here. back to you. >> all right. jackie de angelis at the nymex, perhaps that's why we're seeing energy the best overall performing sector today. checking the broader markets, we're seeing all major averages trading into the positive territory. the nasdaq trading up by .5%. the dow seeing its first four-day winning streak since may for the s&p. swree to go back to january so certainly something we're keeping our eye on as s&p is holding steady above 2100. meanwhile, shares of twitter in rally mode this morning. that stock trading above its 50-day moving average as carl mentioned for the first time since really before the rough earnings report back in in. april. and the shares of jp morgan are back in the green after second quarter profit topped analysts' estimates. it offset weaker trading revenue in the fixed income department. wells fargo in the positive even
though revenue missed earnings expectations, 1.03, a meet but people were expecting with all the buy-backs you would see something a little bit better. >> interesting to watch and some of the comments coming out of the call today. when we come back it's often called the amazon of india. flip cart, one of the biggest unicorns around. they're going to join news a first on cnbc interview. hillary clinton taking a shot at uber. uber's former cto, the third employee of the company is with us live to respond. plus history, three billion miles away, we will take to you pluto. it took serena williams years to master the two handed backhand.
a company backed by the chinese government reportedly preparing a $23 billion bid for chip maker micron. in what would be the biggest chinese takeover of a u.s. company in history. the offer could come as early as tomorrow. although micron says as of now it has not received an offer. it seems investors like at least the sound of one. shares surging 12% in trading. joining us this morning, jason kalicasin, angel investor, early uber investor and the ceo of kalicanis.com. a lot of discussion about whether the bid is real. if it is real, whether it would ever get approved. you got thoughts? >> i'm not an expert on that to be honest.
>> we listened to hillary clinton give a speech yesterday regarding the sharing economy. what would happen to uber in terms of costs and valuation if in fact it had to count all of these people as full-time employees? >> yeah. to be clear, i don't have an operational role at uber, or google, and i don't speak for the company. i think the sharing economy overall, i think has been great f for. >> the ability to drop your kids off at school and press a button, go pick your kid up from school, turn off your work, turn it back on. it's clear that these are independent contractors when they're doing this kind of behavior. so i don't think it will have much of an impact at all if people have to be full-time or contractors. think it should be the choice of the employee what they want to
be. and you know, plenty of options to be full-time employment and plenty of options to be a contractor. i don't see this as a major issue. >> jason, it seems like it could be major in the sense that uber is pushing back against the idea of having to classify these folks as employees part-time, full-time. either way. and it seems like the deal has gotten a little bit more raw for the uber driver over the years. i remember when uber was first in san francisco. the drivers were really excited. they were making a lot more money than they're making now. as supply has gone up, it's been tougher for them to make as much money as they might want to. what's the right way politically to address these kinds of issues if you're in hillary clinton's position? >> well i, again i think that the drivers and you know, peemt who are providing other services, you know we have cleaning companies now, and lots of different services, it really should be up to the employees to pick which style of work they want. and there are places you can go to have full time employment in
this sways and places you can going to a contractor. some people want to use their own car. some people don't want to use their own car. there's plenty of opportunity for people to go to a service where a car is provided and work full-time. there's plenty of opportunities to work as a contractor. one of the great things about the sharing economy is it puts the employee back in the driver's seat, so to speak. they can pick who they work there. there's no exclusivity. if you want to work for uber or lyft or another ride-sharing service or want to deliver for bento or another sprig or spoon rocket you can just pick and many people are working for many services concurrently. this is actually the ultimate free market for employment. you can choose who you work for, hour by hour. i think that this is going to be net-net-net, great for the drivers and great for the people who are part of the on-demand economy. now of course they're going to have to be able to do their taxes properly. they're going to have to be able to account for being essentially a small business owner by you know, accounting for all their
expenses. but that's not something that that's that difficult to do and people can make a choice. if you want to work full time for the companies, a lot of people want to work three, four, five hours a day and enjoy quality of life. that's what the on-demand economy is about. >> and yes there's flexibility, jason. but if one of those drivers makes the choice to work 40 hours plus for uber in a given week, do you think that we could enter a point in time where uber owes that person benefits? >> yeah, i think that you know putting uber, looking at all of the companies, it's some of the companies are going to choose to lock the employees in, right? i think you're seeing that. some companies say we want to have the talent locked down. we're going to play a lower hourly rate. we're not going to give them options, they're not going to be able to use their own car or equipment. they can't go pick up their kids after school. they'll draw a certain contingent of the employment
force. other people will want the flexibility. it's going to be a free market and the best company with the best offering will win based upon what the employees want. what those contractors want. do they want to be employees? do they want to do a 9-to-5, punch a clock gig? or just work when they want and enjoy their quality of life. it will be a fascinating free market exercise. nobody has this talent pool locked down. nobody has these contractors locked down. once you start locking down, actually i think that will be the benefit of the companies that do lock them down. because they won't be available to competitors. so i don't think that this is going to be a big issue for any of these companies, they can choose to do either one and the companies are so strong in terms of consumer demand, they'll just be paying the hourly people less. the contracts would get paid a little more and have tyke out their expenses. it's a simple economic model. >> people -- >> people forget there's ultimate choice on the part of the contractor. >> it may seem simple for now.
it depends on how much of a political football this becomes and we'll get your temperature on how it's reverberating in the valley in the coming weeks. jason, thanks again. >> it's probably a dangerous position for hillary clinton to vote against silicon valley. by the way. obama got into office based on silicon valley. if hillary wants to go to war with silicon valley, that's not a wise fight. >> california does have a lot of electoral votes. jason calacanis joeng us from san francisco. coming up, the amazon of india, flip cart is now valued north of $15 billion. the company joins us first in an interview later this hour. here at the td ameritrade trader group, they work all the time.
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annual delivering alpha conference, china, europe and iran sure to be part of the big discussion and kate kelly is here with more. >> early on the agenda is a discussion called global opportunity. great term for it since a lot of people are focused on some of the current stress points around the world. as potential buying windows down the road. maybe not too distant into the future. mary urdos who runs jp morgan's $2 trillion asset management business is an example. i talked to her as grexit becomes possible, she shade china would be one to watch as potential catalyst. combined with liquidity gaps in the market, you don't know what's going to trigger something else. the right investment discipline should jeb rate great investment disciplines in the longer-term. other speakers include apollo natural resources greg beard have told me they are looking for the next leg down. in greg's case in energy as the point to pounce on.
despite the ongoing stress in the oil market. even more pointed today. with news of an iran deal it could lead to yet more supply on the global market. folks like beard think that prices will stay lower longer and want to be ready when further distress hits this embattled sector and industry consolidation begins. and two others on the global opportunity panel, have been active in distressed investing. it will interesting to see how the fellow panelist christopher ailman, running a teacher's pension, running high set classes. typically you want to stay away from the higher-risk investments. >> coverage of delivering alpha kicks off at 6:00 a.m. tomorrow. our morning line-up, blackrock's chairman and ceo larry fink and esther dyson and christopher
elman chief investment officer at the california teachers retirement system. it will be a great day of coverage tomorrow. we're a few minutes away from the european close. mostly green today. simon is here to wrap it up. >> in fact we move positive throughout the session as wall street opened in positive territory. so you had a week of gains in europe that's taken the broad market up. almost 7% during that period of time. deutsche bank putting it there's the perception that greece has been removed, as a major catalyst, a risk through the rest of the summer albeit with elections in the autumn. we'll see if that turns out to be true. the bank of england aligned with the fed in raising interest rates, the governor there, the canadian running the bank of england suggesting the point at which interest rates may begin to rise, is moving closer. once rates begin to rise we expect those adjustments to be at a gradual pace and to be of in a limited extent. but you did see it draw some of
the uk home builders lower. however overall think within the, they're still down. a lot of them still in negative territory as a result of that greece is very much on the agenda. people are wary of what is happening, in athens today, the greek prime minister is expected to present the austerity package demanded by the rest of the eurozone, the big question is can he get it through? and in what form. does his government survive? into that mix it's interesting, if not somewhat extraordinary that the german finance minister, wolfgang scheuble, who is very experienced politician in berlin suggest there is are many people, many people inside the german government who believe that a greek exit would be a better solution for greece and the people of greece. we believe he may feel that personally. but for him to say it in the current environment is not helpful to the greek prime minister attempting to convince the rest of the greek politicians that they, it is in their interest to push the
austerity through. is it probably woenl affect the german vote on friday to restart talks, because the opposition is so strongly in favor of that within german government. but it may affect the greeks' ability to pass the austerity through. back to you. we'll watch the inner workings of greek politics tomorrow. when we come back, a closer look at the $15 billion company often called, the amazon of india. flip card's chief product officer with us on a first on cnbc interview. session highs up 51 at 18029. but what if you could see more of what you wanted to know? with fidelity's new active trader pro investing platform, the information that's important to you is all in one place, so finding more insight is easier. it's your idea powered by active trader pro.
good morning, everyone, i'm sue herera and here's your cnbc news update. democratic presidential candidate hillary clinton calling the iran nuclear deal an important moment and a step towards curbing iran's nuclear ambition. she made the remarks on capitol hill after meeting with house democrats. calpers, the california public retirement system said it missed the retirement target by a wide margin thampbs to an underperforming private equity portfolio. it said it was a return of 2.4%. far below the 7.5% investment goal. at least 27 people were kill and a dozen injured in a stampede during a hindu religious bathing festival in
southern india. when tens of thousands of people pushed forward to bathe in the river. and mexico's fire volcano living up to its name. spewing plumes of smoke and ash high into the sky. the volcano has had steady activity since thursday. blanketing nearby villages in a thick coat of ash which has prompted evacuations of hundreds of residents. let's get back to the gang on "squawk alley." thank you, sue. well since we last spoke to our next guest, the company has raised an additional $800 million. valuing it at $15 billion. so what is next for the company being called the amazon of india? huni sony is chief investment officer of flipcart. punit, it's great to see you. >> great to be here. >> you had just joined the
company in march. how does the flip cart of july look different from the flip cart of four months ago? >> it's incredible. it's exploding. you know we back last year sometime we were about 15 to 20% traffic was mobile. now we're talking about almost 70% of all of our traffic being mobile. that's an incredible shift in the country. revenues are going up and there's a lot going on. >> with that type of explosive growth, especially as you mention on mobile there are a lot of people saying does flipkart even need a desk top site. is that the direction you're moving in? >> we're spending a lot of time trying to figure out how to build great solutions for mobile, mobile is absolutely our primary and probably very significant parts of our focus. today we do have a desk top site along with a mobile site. but the energies of the company are very directed towards the mobile. that's where most of the audience and the users are at this point. >> i know it was one of the reasons why when people first
off by a combination of google and motorola. first android came on board and motorola built a phone like motog and we launched it on flipkart. and there was an exponential use of low-cost phones it became a big part of our revenue stream. it became a huge part of the indian usage. after that a lot of new low-cost smartphones came b. these android phones are driving the usage of e-commerce in india today. and so we expect that as even though we have millions and millions of users, we expect it to keep going exponentially over the next few years. >> punit, i believe your big holiday shopping season is coming up in mid october. a lost logistics, preparations going into that. talk about what happened last year in terms of the increase in volume during that season. what you expect this year and some of the measures that you're putting in place to make sure it goes more smoothly? >> absolutely. it's interesting because last year, you know, we thought we would do something, which is
very similar to what many places in china does. we want to do the big billion day. we put out a lot of different sales, we put a lot of effort behind it. but the amount of demand far outstripped almost everything we can throw at it. in many ways it was incredible for us, because it is a growing period also. no matter how much infrastructure we put into it. the demand would just be crazy. and to some extent, i believe that's the story of india. today supply is what constrains demand. no matter how much you open up, it just keeps increasing. that was last year. it's interesting from that time we have learned a lot. these days, when we do a monthly sales event, it's actually as big, as the last year's big billion day. any regular monthly app, mobile-only sales event is almost the same size as the event for the last year. so it's the growth has been significant. our ability to deal with the growth has been significant. but i'm very sure that come this you know festival season we're going gn to see orders of
multiples, more demand than all the infrastructure we can throw at it. we are learning, getting better. but the indian consumer is way ahead of us. >> punit we're getting word that you're stealing executives from the likes of yahoo. eric lang who ran analytics for their business is coming to you. what are your aspirations of trying to convince american workers to come join you? >> i think the key thing is, we're global economy. and we're going to have the best talent from a croix the world show up and want to work with us. a lot of people think of flipkart as an indian company. i think of it as a global company serving the indian customer. flipkart is at the forefront of fixing some of those infrastructure things. 20% of the world's population is working hard, wants to access a lot of different goods and flipkart is a part of that story. when 20% of all the world gets
better, all the world gets better. for me a it's a global company, it's a global mission. the best talent from everywhere is going to show up and eric is part of that story. >> punit, i want to ask you about competition with amazon. it looks like com score is suggesting that amazon has surged ahead of flipkart. i'm wondering if that's because you might be de-emphasizing your mobile website in favor of your app instead. and com score might not be measuring that. what's your take? >> we are mindful and respectful of our competition, but we're not going to obsess over it it's not that important to what amazon and other people are doing. what matters is lou can we serve the indian consumer more. that's our focus. now numbers, the truth is our internal numbers show we are much more significant in terms of our traffic than most of our competition. most of our traffic actually does come from mobile. and so therefore i contend that how mobile does is probably a
better barometer of our success than any other numbers, especially numbers that are focused on a web-only property. large swath of the indian market is only going to be in mobile if you look at the large swath of villages, they're never going to see la laptop, no matter what happens. so the focus on a smartphone. the focus is mobile. that's where the action is and that's where the traffic is and that's where success should be about. >> opinion unit, as we grab wlt metrics, an analysts try to wrap their head around how big the market whether we call it e-commerce, or m-commerce, up to you. ubs says by 2020, $50 billion. morgan stanley says $137 billion. which number do you think will be closer to you in the next few years? >> i think the number we should focus on is actually the number of smartphones. we have 150 million smartphones in the country today. we're going to probably end up with half a billion smartphones by 2018. half a billion smartphones is
still only 45% of the total indian population. and so therefore, as the number of smartphones increases, the market keeps increasing. these numbers you know they don't account necessarily for all the needs of indian consumers. they don't account for the fact that hyperlocal market might be become part of the indian consumer psyche. there may be other revenue streams and other ways that people buy things which can afford a higher margin. it's hard to look at some of the numbers with the variation and the range being so high. what i will say is focus on the number of smartphones. for most people, they have nothing else to buy stuff on except for a smartphone and they'll never see a laptop in their lives so that's the metric that you should care for when you look at revenue numbers with respect to companies like flipkart. >> from that angle, punit, it sounds like just the tip of the iceberg. please come back soon. >> absolutely. would love toe here again. >> punit sony is the chief product officer for flipkart. uber a major target of
hillary clinton after she called out the on-demand economy in that speech yesterday. uber's former cto, the third employee of the company will join us to respond. rick santelli, what are you watching? >> well of course we have to talk about today's data. but, some of the breaking news with sue herera on calpers caught my eye. think we'll need to talk about that a bit as well. after the break. in the us, three in ten college students drop out. but how can you spot who's at risk? the one who lives far from campus? the one who works the night shift? the one with new responsibilities? one thing can't tell you, but the right combination can. universities are using ibm analytics to understand pressures in and out of the classroom-
coming up, a four-day rally for the markets, the first day in six months and super investor mario gabelli joins us, bold calls on the street today on some of the biggest names, including amazon, intel and coca-cola. we'll analyze the analysts' and his fund has been a big out-performer over the past 15 years. so anton schutz gives us his number one financial pick. his pick is a name you might not have heard of. see new about 15. >> you might have stuff to work with as well we were talking about twitter. having broken back above the 50-day moving average for the first time since the miserable earnings call in late april. you can see now up about 7%, close to session highs, the report out of bloomberg does says that twitter is working closely with bankers after receiving an offer to be bought out by $31 billion. citing people close to the situation. they say while a deal is expected to be reached, bankers
may rebuff any suitor or work out an eventual sale. obviously no confirmation whatsoever. we're still trying to parse the legitimacy of the report. but the market is responding to these reports. >> and it comes just days after cfo anthony noda was asked about the potential for a deal in sun valley. >> and while the story does not clearly say that they have hired bankers to rebuff any deal. it certainly is some interesting language for a company that has been rumored as potentially being in play. especially with the ceo search in flux. >> there are a couple of interesting, i'm looking at the link of the report, they misspelled dick costolo's last name. they call him dick costello. there are a couple of other grammatical errors, i don't know if that's a function of something being written quickly. or if it points to -- we've seen some crazy stuff happen on the
internet and around the world in the last ten days. so we're going to, we're going to watch it very closely. we want to bring you everything at least that we're seeing from this vantage point. for the meantime, the dow is up 56, let's get to the cme group and rick santelli. >> let's to which on some of today's data points. retail sales was definitely on the weak side. this going to be the last one of course, considering it was june. and on the 30th, thursday the 30th, we get our advanced look, our first look at second quarter gdp. which brings me to the point, if we consider the street, there's a bit of optimism there. i mean let's face it. if you're a cobbler, you don't take out commercials saying go barefoot, okay? so the street has wares to sell. but they're not necessarily tangible. they're financial wares, okay? and they're going to lean towards optimistic. so right now i believe goldman's second quarter advanced estimates is 3%. barclays, i believe moved to
3.3. my nonscientific poll, 3 to 3.6 seems to be the norm. except for a big asterisk. atlanta gdp now, which hasn't updated yet. we're keeping a close eye on it it's currently as of the 7th of july at 2.. 2.3, to an average of 3.3 is a huge difference. the 1% is a lot of pictures of andrew jackson, trust me. so we want to see how the optimism proves to be with gdp now. atlanta fed. think that that system is worth monitoring. another issue cropped up. so we're going to do a beeline. we learned today that california public employees retirement fund, known as calpers, its size is about 300 billion. reported 2.4%. a lot better than i get out my savings. 2.4% isn't bad. but built into the model and already reduced, you remember mr. belt who i had on, the former head of the pension guarantee trust, these numbers have come down to try to find some sort of reality. but the reason i am aiming in
this direction is how many times have you heard me over the last six months say there are lessons to be learned. there are lessons to be learned by greece. and even though there was a lot of coverage of greece, there was really much less talk about the lessons. well here's a lesson in our own country whether you're in illinois, chicago, or california, the under-funded liabilities are a claim against the future earnings of many. the problem is, is that the earnings of those that are in charge of making sure the funds are on hand at some time in the future. are falling short. and if you look at the immigration numbers of california, you look at the swelling of its entitlement ranks over the last decade, this is something to pay close attention to. you see all the issues of greece? i'm not saying california is like greece, it's hugely different. in form of a timeline. but the problems, that festered from the original seeds, there's lots of similarities between some of the areas in the united
states. kayla, back to you. >> thanks so much, rick santelli in chicago. we're watching shares of twitter and i believe that we have more on that story. dom chu back at headquarters with an update as the stock, dom, continues to come down. >> it does come down and the reason why is there are some indications route now, we're still trying to sort things out. there's a big indication that the twitter news that was cited prior, as coming from bloomberg news, is actually a fake report. and that's the report why you're seeing the air come out of the stock. it was up by 6% to 8% at one point. now up 3% still. but the story that was referenced for the bloomberg story may not have come from an actual bloomberg domain. that was part of the actual bloomberg news organization. that's the reason why. we're still trying to sort this out. but it appears as though the story that said allegedly that twitter had been talking to bankers because of a possible deal that was proposed to them
was actually coming from a fake account. so we're going to continue to kind of monitor the situation. bring you more details. dig of course a little on our own, on our side here. john, kayla, carl. but it seems as though the twitter report may not be a true report. we'll bring you more details as we know more on our side, guys. back to you. >> we had some questions immediately, dom. when the report crossed twitter, the report i should use in quotes. i tried going to the bloomberg site and searching twitter and it didn't come up. which was our first suggestion that maybe this was a little bit suspect. and then you couple that with some of the grammatical errors in the copy. almost read as if it wasn't written by someone for whom english wasn't a first language. the misspelling of dick costolo's name. so the doubts have risen quickly. even though employees of bloomberg themselves, have been tweeting the link which shows that the confusion is widespread. >> and the url on the report was
"bloomberg.market" not "bloomberg.com." what it shows is whether it's s.e.c. documents that are faked, there are people out to manipulate stocks and markets. in this case the stock actually did move. which of course catches our attention when we look at some like this and try to determine what the cause is but yes it does look like this story is fake. we'll continue to look into it. up next, hillary clinton calling out the sharing economy in a major policy speech yesterday. and while she didn't mention uber by name. the company a target of those remarks. uber's former cto will join us to respond. we're not rich, but we want to be able to
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hit them when you're digging. 811 is a free service. i'm passionate about it because every time i go on the street i think about my own kids. they're the reason that i want to protect our community and our environment, and if me driving a that truck means that somebody gets to go home safer, then i'll drive it every day of the week. together, we're building a better california. many mrns are making extra money renting out a spare room, designing websites. selling prg their own car. this on-demand or so-called gig economy is creating exciting opportunities and unleashing innovation. but it's also raising hard questions. about workplace protections, and what a good job will look like in the future. >> that was hillary clinton yesterday, addressing the difficulties of the so-called sharing economy. taking aim at the likes of uber,
airbnb, etcy and others, joining us is oscar salazar, the former cto of uber and co-founder of pager, another new economy company. oscar, what's your take on hillary's comments? does she have a point in there about exciting and yet there are concerns? >> i think she's right, you know to have concerns. all these companies are creating a new economy. i think she's right in the sense that we need to take a deeper look on how the economy is being shaped. how people are having an effect by this new services. it's what i call regulation 2.0, that needs to happen. so i think it's a good time for government officials to take a look about the implications of the new services. these services have grown so fast. they have affected millions of people's lives. so it's a perfect time to start
raising these kinds of questions, doing some research and possibly establish a framework, not only for the shares economy, but also about drones. about self-driving cars. technology is moving so fast. we need to come out with a better framework to regulate or at least to understand the news services. >> let's talk doctors. that's what you're moving into. medical care. how is that going to make the situation better for people trying to get medical care? and i'm also wondering about how it all gets connected. if i get, a doctor through pager who notices some things with me, where do my medical records go? how does that get integrated into the whole story about me? >> exactly. we want to provide high quality health care services to people. that's the bottom line. we are thinking about becoming the amazon for health care. basically you go to the app, you open the app.
you tell is the app what your ailments are, everything is encrypted and protected. our algorithm triage you based on the symptoms that you have. and pretty much suggest a service for you. it will t could be a telemedicine consult. for example you have a skin rash, you could take a picture and send it. we can triage you towards that path. it could also be for example if your condition has to be seen by a doctor physically, we can actually send you a doctor to your home, can prescribe medicine at home. and can actually help understanding you know what your symptom is also because we're partnering with the health systems, we can fast-track to you the closest hospital if your condition cannot be treated at home. we are becoming this engine to pretty much deliver the best care for you. >> that's fascinating. i wonder are there parallels to building this infrastructure versus uber's?
how much experience could you bring from that experience to this one? >> one is a patient app and the other is the doctor app. that's the only parallel. other than that, there's more, we are leveraging different algorithms to, and also human, expertise like we have nurses you know, in house. and doctor experts in triaging people so we can deliver better care. >> all right. oscar salazar, uber employee number three. and co-founder of pager. interesting to see where this on-demand economy takes us. >> what a confusing day it's been in m&a. for one, this apparent hoax regarding a would-be bid for twitter on a fake bloomberg site. there's micron news where they say they didn't receive an offer. what it might mean down the road for a stock that's had such a tough year already. >> micron, goes through the cycles, right now it's at the
bottom of a cycle. the bid isn't that high considering where the stop has been trading recently. >> is it a trial balloon? >> i wonder if it is a trial balloon to see what people say. but we'll see. >> that does it for "squawk alley" on this tuesday, let's get to headquarters, scott wopner and the half. carl, thanks so much. welcome to the halftime show, let's meet the starting lineup. stephanie link is here along with jon najarian and pete najarian. our guest host for the hour is mario gabelli, the chairman and ceo of gamco investors, our game plan looks like this, chip wreck, why intel shares were slapped with a sell today. the man on the street is with us, live. bankroll, top investor anton schutz on whether financials have what it takes. >>